JSPL Intends to Raise Production from Mozambique Coal Mine

JSPL Mozambique Minerals Limitada (JMML), the subsidiary of Jindal Steel and Power (JSPL), has planned to increase coal production from its mine located in Chirodzi, Mozambique.

Officials from the company have reported that the impending work to expand the coal processing unit was in the final phase, which is likely to boost coal production from the current 3 MnT to 4.5 MnT. It is pertinent to note that the company had taken adequate measures including second phase exploration of coal in Chirodzi, in order to attain annual production of 5 MnT.

Inaugurated in CY12, the Chirodzi mine has estimated reserves of 1.2 BnT, which yields both coking and thermal grade of coal.

JMML had clocked an EBITDA of USD 12.63 Million for the FY19 (Apr’18-Mar’19), wherein higher than usual coking coal prices led to a better realization.

The miner has incorporated its own railway wagons to export the coal through Beira port using Sena rail-line. However, the major constraint on the company in terms of operating costs is the distance from the mine to the rail-line, which is approximately 150 kilometers.

Nevertheless, JMML has been focusing on process efficiency and production capacity enhancement in line with its projected target to ramp up production multi-fold in the coming years. The mining area in Chirodzi is under a lease period valid until 2035.